Toyota Case Study: Business Operations and Management Analysis

This case study analyzes the business operations of Toyota, a Japanese multinational automotive manufacturer. The report begins with an introduction to business operations and then provides a brief overview of Toyota, including its corporate structure and products. The main body delves into the key functions of business operations, such as marketing, finance, information technology, and research and development, explaining their importance to Toyota's success. The study then evaluates Toyota's operations management, focusing on production, supply chain, logistics, location strategies, quality control, and human resources. It examines how Toyota makes decisions in each of these areas to maintain its competitive advantage. The case study highlights the importance of each function and provides insights into Toyota's approach to business operations. The conclusion summarizes the key findings, emphasizing the significance of effective business operations for achieving organizational goals.

BMM3003 - Case study.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explanation of the main functions of business operations..........................................................3
Brief description of Toyota company.........................................................................................5
Evaluation company's operation management............................................................................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business operation refers with those activities through which businesses are engage with
the daily basis for increasing value of the enterprise in order to earning a profit in effective
manner. The activities can be optimized to generate sufficient revenue within the business in
effective manner. The revenue to cover expenses as well as to earn a profits for the owners of the
business. This creates more effectiveness for the business. The present case study is based on the
“Toyota” which is the Japanese multinational automotive manufacture company. The report will
present the main and effective functions of the business operations. This will cover the brief
description of the selected company in respective manner. This will evaluate the company's
operation management decisions towards the business like supply chain, production, logistics,
quality control, location strategies as well as Human resources.
MAIN BODY
Explanation of the main functions of business operations.
Business operation might be think about the simple items as well as the tasks which are
completed on the day to day by employees of the company. This creates more effectiveness
within the business and for the growth factors. Business operation is effective help to maintain
the effective communication and striving for consensus (Choi, Wallace and Wang, 2018). This
providing senior level management with the right amount of monitoring and tutoring. This is the
effective monitoring and auditing process of business processes. Through that, company Toyota
is able to maximising the performance by establishing an effective balancing between
departments and the group in an effective manner. Through that, management have great chance
to build their positive working environment by maintaining work at the workplace in effective
manner. There are different types of business operations functions which are help to business and
company for maintain their work at the workplace. Explanation of those functions are as follows:
Marketing functions:
Marketing is the effective process of getting products into the hand of the consumer in
order to satisfying needs and wants of customers as well as producers in effective manner. This
is effective and valuable for the business to meet the needs of business that is achieving goals
and objectives of company (Massa, Tucci and Afuah, 2017). On the other words, the marketing
functions creates a good process through which producers as well as the customers are brought

together for exchanging their relationship and transfers of ownership takes place in effective
manner.
Finance function:
Finance is the other function of business operation which is plays an very important role
within Toyota company. This function have role to allocate funds to company for paying their
bills and for expenses. That have complete records of the finance uses within the company.
Finance function of Toyota is responsible for implement proper decision in investment decision
like budget planning, capital budgeting, financial decisions like capital structure fixed and
working as well as the short term and long terms goal of the business and taking effective
dividend decisions in effective manner (Business functions, 2019). Company maintain the
effective relationship with the financial markets which is includes major shareholders as well as
the take care of other concerns in effective manner. They have effective chance for managing
thinks in effective manner to control the business in effective manner.
Information technology functions:
This is the another important function of business operations. Present days businesses are
not able to manage their assistance of efficient information function. This function is basically
reviewed with the records which are more important for the business in effective manner. This
creates more effectiveness for the Toyota (Park and Paiva, 2018). The main purpose of this
function is to collect and generate as well as communicate clear and easily intangible for the
business and for their growth in effective manner. Through that, management have effective
opportunity and chance to take better decision making within the Toyota.
Research and development functions:
This is foremost important function of the business operation where company have
opportunity to build new strategy as per requirement of business in effective manner. This
function is responsible for collecting information from market and get update about the current
trends that are runs at the market place in effective manner. This department collect information
and hand over to concern department (Pınarbaşı, 2018). Through that management able to make
strategy for success of company at the market place in effective manner.
Those are the effective function of the business operation which are help to manage
business in effective manner.

Brief description of Toyota company.
Toyota Motor corporation is the Japanese multinational automotive manufacture
company its headquartered at Japan. This is public type of company and serves their services
world wide in effective manner. Company belong with the automotive industry. Company have
different types of products and services which are auto mobiles, luxury vehicles, commercial
vehicles and robots. Present the company have 359542 numbers of employees with providing
services into the banking, financing and leasing (About Toyota, 2020). Company is second
largest company and first auto mobile manufacture to produce more than ten million vehicles per
year. Company has the corporate structure which is consisted with effective employees. The
company have best skilled employees who gives effective performance for achieving goals and
objectives of company in effective manner. For that company organize training and development
session time to time is help to improve skills of employees in effective manner.
With the help of this company have effective chance to build effective goodwill at the
market place. Toyota management follows the divisional organizational structure in order to run
their business in effective manner. Toyota employs its organizational structure is support to the
business goals and strategic direction. There organizational structure is link with traditional
structure. This organizational business structure is provide a greater degree of flexibility
compared to the old centralized structure (Qi and et.al., 2017). With this structure company is
more capable in order to responding regional market condition. With the help of this
management is able to solve all the issues as well as provide higher quality of products and
services at the market place in effective manner. However, this help to management for taking
better decisions to regional head. That has reduced the effective control over the global
organization. This organizational structure is provide the complete facility to business resilience
and continued growth of the business in effective manner.
Evaluation company's operation management.
There are different kinds of operation management which are help to promote their
business at success pint in effective manner. Those operations are production, logistic, supply
chain, location strategies, quality control and Human resources. These are help to make proper
and effective decision for the company and for its growth factors in effective manner.
Explanation of those operation management decisions are as follows:
Production:

Production is very important part of the Toyota company. This help to produce better
quality of products in order to satisfying needs and wants of customer in an effective manner.
Decision at the time of production, they are making proper plan, form, staffing, directing and
controlling all activities in the process of converting all the inputs into the finished goods. At the
each level, operation manager are expected that to take decision and implement them too in
effective manner (Zerfass and Viertmann, 2017). Production manager of Toyota take better
decision such as goods and services, quality management, process and capacity design, layout
design. Those are effective management for managing successful growth of company at the
market place in effective manner. This is the very important for Toyota operation management to
take better and effective decisions at the time of production of product is help to produce quality
products for satisfying needs of customers.
Supply chain:
A supply chain is a network between the company and its suppliers to produce or
distribute the products to the final buyer a the market place. This is the effective network which
is includes different kinds of activities like people, culture, information, entities and resources of
the company. This help to find out the best and effective strategies for streamlining, be the cost
effective and to develop the trust of parters in an effective manner. Toyota operations manager
uses the lean manufacturing for the supply chain management. In this operation management
take decision, the company uses automation system for the real time adjustment in the supply
chain activity (Suh, 2017). In this way, company able to minimizes the bull whip effect in its
supply chain management in an effective manner. Supply chain management is the most
important part of the company because through that management take effective decision to reach
out the potential customers in order to satisfying needs and wants of them.
Logistic:
Logistic management is the effective part of supply chain management process. This
process is refers with the plan, implementation and control the efficient flow and the proper
storage of goods and services (Chiarini, Baccarani and Mascherpa, 2018). Toyota operation
management take care of their products and storage process at the workplace. They take care of
their products and services in effective manner for maintain their quality of the production. With
the help of this management have chance to satisfying needs of customers and maintain their
quality of production with proper storage.

Location strategy:
A location strategy is the plan for obtaining optimal and proper location for the company
for identifying needs as well as objectives of company in an effective manner. Searching for the
location with offerings that the are compatible with the need of company. Location strategy of
Toyota company uses the global, regional and local locations (Toma and Naruo, 2017). Like the
company has the localized manufacturing plant in the US, as well as the official dealership in all
the market except with the some countries. Thus, Toyota addresses this kinds of strategic
decision area of the effective operation management through the a mixed and proper set of the
strategies at the place of work and market.
Quality control:
Quality control and management is the another decision of operation management of
company in an effective manner where management need to make their complete concentration
on the quality of products which they are provided and offers to customers. For that there are
different methods which are help to maintain the quality of products such as Six sigma and total
quality management system. To the maximize the quality of products, company Toyota uses
their own Toyota production system (Ban, Yamasaki and Toyota, 2019). Quality is one of the
best key factors which is help to attract more customers towards the business. As per that
company addresses this decision area of operation management through out the continuous
improvement, that is covered by the company with the sets of management principle.
Human resources and job design:
Human resources and job design is the most important aspects of the each and every
company because they are helping to hire the efficient and best candidate for the company and
their vacant posts in effective manner. Through that, management to got the best talented and
skilled employees for completing the work. The company Toyota applies the way and Toyota
production system for this strategies decision area of the operation management. The company
give respect to all the employees within the company and integrated in the Human resources
programs and policies in respective manner (Choi, Wallace and Wang, 2018). Company also
organized time to time training and development session for improving skills and knowledge of
employees.
Those are important factors where operation management take effective decisions at the
workplace in effective manner.

CONCLUSION
The above study summarized here, business operations has been important for the
company in order to achieve their organizational goals as well as objectives in an effective
manner. The report has explain by the important functions of business like human resource,
finance, research and development and marketing. In respect to that report covered with
overview of company as well as their important operation management decisions in respect to
human resource, logistic, location strategy, production, quality control and supply chain
management of the company.

REFERENCES
Books and journals
Ban, Y., Yamasaki, N. and Toyota, H., 2019. Operation device and operation method.
Chiarini, A., Baccarani, C. and Mascherpa, V., 2018. Lean production, Toyota production
system and kaizen philosophy. The TQM Journal.
Choi, T. M., Wallace, S. W. and Wang, Y., 2018. Big data analytics in operations management.
Production and Operations Management. 27(10). pp.1868-1883.
Massa, L., Tucci, C. L. and Afuah, A., 2017. A critical assessment of business model research.
Academy of Management Annals. 11(1). pp.73-104.
Park, C. L. and Paiva, E. L., 2018. How do national cultures impact the operations strategy
process?. International Journal of Operations & Production Management.
Pınarbaşı, F., 2018. The effects of strategic design on business operations. In Strategic Design
and Innovative Thinking in Business Operations (pp. 115-129). Springer, Cham.
Qi, Y. and et.al., 2017. The impact of operations and supply chain strategies on integration and
performance. International Journal of Production Economics. 185. pp.162-174.
Suh, Y., 2017. Knowledge Network of Toyota. Annals of Business Administrative Science.
16(2). pp.91-102.
Toma, S. G. and Naruo, S., 2017. Total quality management and business excellence: the best
practices at Toyota Motor Corporation. Amfiteatru Economic Journal. 19(45). pp.566-
580.
Zerfass, A. and Viertmann, C., 2017. Creating business value through corporate communication.
Journal of Communication Management.
ONLINE
About Toyota. 2020. [Online]. Available through: <https://global.toyota/en/company/profile/>
Business functions. 2019. [Online]. Available through:
<https://www.preservearticles.com/business/6-most-important-functions-of-business/
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